Human Resource Management

Human Resource Management

QuestionWhat do you know about labor supply? What are labor supply issues?

Labor SupplyDo We Have a Shortage of Skilled Labor?

Responses to repeated labor trends are difficult to predict. The world economy in the late 1990s, for instance, was generally quite strong and labor markets were tight. Most employers twisted for skilled workers to fill vacancies.

From the late 1960s through the late 1980s, American employers benefited from the large number of baby boomers (born 19461965) entering the workforce. Some boomers have already retired. The Bureau of Labor Statistics predicts that by 2014, nearly 2.4 million jobs will go unfilled.

This shortage will include most industries, including health care, government, construction, engineering, finance, energy, and information technology.

Despite continued increases in immigration, workforce entrants from foreign countries will do little to correct the supply shortage.

In times of labor shortage, good wages and benefits arent always enough to hire and retain skilled employees.

Human resource managers need sophisticated recruitment and retention(maintenance) strategies and need to understand human behavior.

In tight labor markets, managers who dont understand human behavior and fail to treat their employees properly, risk having no one to manage.

Why Do Organizations Lay Off During Shortages? At one time in corporate America, organizations followed a relatively simple rule: In good times you hire employees; in bad times, you fire them. That rule no longer holds true, at least for most of the worlds largest companies.

Throughout the past decade, most Fortune 500 companies have made significant cuts in their overall staff. Thousands of employees have been cut by organizations.

Downsizing is part of a larger goal of balancing staff to meet changing needs. Organizations want more flexibility to better respond to change. This is often referred to as rightsizing, linking employee needs to organizational strategy.

How Do Organizations Balance Labor Supply? Organizations are increasingly using group workers to respond to fluctuating needs for employees. Contingent workers includePart-time workersTemporary workersContract workers

Contingent workers

The part-time, temporary, and contract workers used by organizations to fill peak staffing needs or perform work not done by core employees.

Core Employees

An organizations full-time employee population.

Part-Time EmployeesPart-time employees are those who work fewer than 40 hours a week. Generally, part-timers are afforded few, if any, employee benefits. Part-time employees are generally a good source of workers for organizations to supplement their staff during peak hours. For example, the bank staff that expects its heaviest clientele between 10 A.M. and 2 P.M. may bring in part-time tellers for those four hours.

Temporary EmployeesTemporary employees, such as part-timers, are generally employed during peak production periods. Temporary workers also act as fill-ins when some employees are off work for an extended time. For example, a secretarial position may be filled using a temp while the secretary is off work during his twelve-week unpaid leave of absence for the birth of his daughter.

Contract Workers

Contract workers, subcontractors, and consultants are contracted by organizations to work on specific projects. These workers, typically highly skilled, perform certain duties. Often their fee is set in the contract and paid when the organization receives particular deliverables.

Labor Supply

Labor Supply Issues How to attract quality temporaries

How to motivate employees who are receiving less pay and benefits

How to have them available when needed How to quickly adapt them to the organization

How to deal with potential conflicts between core and contingent workers

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